Tradesperson tool allowance

[jodegagne]

I cannot get the tradespersons tool allowance amount to populate? My son bought tools $911.48, income earned $33104.76. I think it should allow him to deduct $500? I have entered the tool amt in HST column & income below that. What am I doing wrong?

[Delphision · Accepted solution]

The calculation for trades tool allowance also includes the Canada employment amount, so the cost of the tools has to be greater than $1,146.

Per CRA:

Maximum deduction for eligible tools is the lesser of:

a) $500; and

b) the amount, if any, determined by the formula

A − $1,146 where

A = the lesser of:

1. the total cost of eligible tools that you bought in 2015; and

2. your income from employment as a tradesperson for the year

plus the amount you received in 2015 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs;

minus the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2015.

[jpo2021]

He was lucky my were more .ladders   $1200.00

Paint brushes $650.00

Drop sheets $800.00

Contractors insurance policy $4000.00 CIBC